PARIS/LONDON, Dec 5 (Reuters): European shares rallied on Friday,
recouping most of the previous session's losses, helped by strong German
factory orders and expectations for upbeat US jobs data due later in
the day.
Shares in oil and gas firms bucked the trend, losing ground again as Brent crude fell close to $69 a barrel. Seadrill was down 4.6 per cent, Saipem down 2.9 per cent and Statoil down 0.9 per cent.
This year's sharp drop in crude prices has forced a number of oil services firms including Seadrill to scrap their dividends as oil majors accelerate cost-cutting efforts.
The STOXX oil and gas sector index has tumbled 23 per cent since June, representing a wipeout in market capitalisation of roughly $240 billion, more than the entire market value of Shell, Europe's biggest oil major, Thomson Reuters data shows.
At 1145 GMT, the pan-European FTSEurofirst 300 was up 1.1 per cent at 1,396.47 points. The index fell 1.4 per cent in the previous session after the European Central Bank stuck to its line that any decision on further stimulus would be made next year, sparking a bout of profit taking.
"People had bought the rumour and they sold the news. There was no major surprise in Draghi's speech. We're still betting on a slow recovery in the European economy," Barclays France director Franklin Pichard said.
Data on Friday showed German industry orders rose far more than forecast in October.
US jobs data, due at 1330 GMT, was expected to show employment growth accelerated in November. Non-farm payrolls are likely to have increased by 230,000 jobs last month after rising by 214,000 in October, according to a Reuters poll.
"A number in line with expectations would make people think there's no need to bank any profit at the moment," said Paul Chesterton, a trader at Peregrine & Black.
Around Europe, UK's FTSE 100 index was up 0.6 per cent, Germany's DAX index up 1.2 per cent, and France's CAC 40 up 1.2 per cent.
Shares in Spanish state-rescued lender Bankia was down 2 per cent, adding to the previous session's sharp losses.
Bankia presented a series of error-strewn accounts for 2011, the year it listed shares, according to a report released on Thursday as part of a long-running court investigation into its flotation and state bailout.
Shares in oil and gas firms bucked the trend, losing ground again as Brent crude fell close to $69 a barrel. Seadrill was down 4.6 per cent, Saipem down 2.9 per cent and Statoil down 0.9 per cent.
This year's sharp drop in crude prices has forced a number of oil services firms including Seadrill to scrap their dividends as oil majors accelerate cost-cutting efforts.
The STOXX oil and gas sector index has tumbled 23 per cent since June, representing a wipeout in market capitalisation of roughly $240 billion, more than the entire market value of Shell, Europe's biggest oil major, Thomson Reuters data shows.
At 1145 GMT, the pan-European FTSEurofirst 300 was up 1.1 per cent at 1,396.47 points. The index fell 1.4 per cent in the previous session after the European Central Bank stuck to its line that any decision on further stimulus would be made next year, sparking a bout of profit taking.
"People had bought the rumour and they sold the news. There was no major surprise in Draghi's speech. We're still betting on a slow recovery in the European economy," Barclays France director Franklin Pichard said.
Data on Friday showed German industry orders rose far more than forecast in October.
US jobs data, due at 1330 GMT, was expected to show employment growth accelerated in November. Non-farm payrolls are likely to have increased by 230,000 jobs last month after rising by 214,000 in October, according to a Reuters poll.
"A number in line with expectations would make people think there's no need to bank any profit at the moment," said Paul Chesterton, a trader at Peregrine & Black.
Around Europe, UK's FTSE 100 index was up 0.6 per cent, Germany's DAX index up 1.2 per cent, and France's CAC 40 up 1.2 per cent.
Shares in Spanish state-rescued lender Bankia was down 2 per cent, adding to the previous session's sharp losses.
Bankia presented a series of error-strewn accounts for 2011, the year it listed shares, according to a report released on Thursday as part of a long-running court investigation into its flotation and state bailout.
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